Pboc, Central bank company

China's economic slowdown and the country's high-handedness in tackling COVID-19 are pushing the investors to move out of the country and shut down their businesses.This comes amid signs of China's economic slowdown as the People's Bank of China has decided to reduce the required reserved ratio to boost lending through commercial banks, as per reports. A few days prior, the International Monetary Fund (IMF) also slashed China's growth forecast for this year.Kristaline Geogieva, the Managing Director at IMF, said that China still has time and room to adjust its policies accordingly as it is essential for them to counter their economic slowdown for global recovery, as per reports.However, Chinese President Xi Jinping continues his facade by stating that China's economy was resilient and that there has been no change to long-term trends yet.With its cheap and abundant manpower, China has long enjoyed its role as the so-called world's factory, however, this seems to be changing with time.Earlier China used to offer lower production costs to lure global brands and retain domestic manufacturers for decades but now a gradual rise in expenses has been weakening China's role as a go-to source of production for companies over the past five years.Multinational firms moving away from China include some of South Korea's largest businesses, including Samsung, LG, and Hyundai Motor. These firms have relocated factories from mainland China to Southeast Asian countries such as Vietnam and Indonesia in recent years.The relocation trend began years ago and was further fuelled by desires to avoid tariffs stemming from a trade war between China and the US. In addition, the pandemic has made matters worse for China.Supply-chain disruptions for critically important goods such as computer chips have forced some economies to bring production home. Moving away from China helps them safeguard the supply of essential resources in the face of geopolitical tensions and uncertainties.Park Sang-min, the vice-chairman of the Korea Chamber of Commerce in Shanghai, said that since large Korean businesses have production facilities outside Shanghai, they have been less affected. But small and medium-sized enterprises are struggling with "great difficulty"."The companies that remain in China are those that need to utilize China's market," he said. "But measures such as sudden lockdowns worry the companies because they create a destabilizing business environment. There could be firms that are considering relocating because of this factor," he added.( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

PbocFOLLOW

Pboc, Latest News

Beijing [China], April 28 : China has not yet completely escaped the recession brought about by its zero-Covid policy. ... ...

Hong Kong, March 17 China's central bank has made a surprise cut to the amount of money that ... ...

Beijing, Feb 15 China's central bank plans to issue 25 billion yuan (about 3.67 billion U.S. dollars) worth ... ...

Chinese authorities have announced the arrests of 234 people involved in the financial scandal surrounding several rural banks in Henan province, local media reported on Monday. ...

China on Sunday dispersed a protest by hundreds of depositors, who sought to demand their money back from banks that have run into a deepening cash crisis. ...

Sri Lanka is reeling under a severe economic crisis and one of the reasons for it was the "deceitful" Chinese currency swap with Sri Lanka worth USD 1.5 billion. ...

China's Yuan hit the lowest mark against the US dollar in the last 18 months on Tuesday, falling to 6.7134 against the USD, the lowest figure since October 30, 2020. ...

China's economic slowdown and country's high handed in tackling COVID-19 are pushing the investors to move out of the country and shut down their businesses. ...